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Which conclusion is appropriate if GDP and unemployment both rise?

Answer and explanation

Correct answer: The benefits of growth may not have reached everyone

GDP growth indicates that total production or measured income has increased, but it does not guarantee more jobs or equal sharing of gains. If unemployment rises at the same time, some people may be excluded from the expansion and may not receive its income benefits. Thus, option B is the appropriate cautious conclusion. The other options claim universal employment, equality or poverty elimination without evidence.

Related tags

UnemploymentGdp GrowthInclusive WelfareGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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